You invest $1,500 today and expect to sell your investment for $2,700 in 9 years. a-1....

Transcribed Image Text:

You invest $1,500 today and expect to sell your investment for $2,700 in 9 years. a-1. Calculate the present value of the future payoff if the interest rate is 5%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Is this a good deal? b-1. Calculate the present value if the interest rate is 8%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Is this a good deal? a-1. Present value a-2. Is this a good deal? b-1. Present value b-2. Is this a good deal? You invest $1,500 today and expect to sell your investment for $2,700 in 9 years. a-1. Calculate the present value of the future payoff if the interest rate is 5%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Is this a good deal? b-1. Calculate the present value if the interest rate is 8%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Is this a good deal? a-1. Present value a-2. Is this a good deal? b-1. Present value b-2. Is this a good deal? You invest $1,500 today and expect to sell your investment for $2,700 in 9 years. a-1. Calculate the present value of the future payoff if the interest rate is 5%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Is this a good deal? b-1. Calculate the present value if the interest rate is 8%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Is this a good deal? a-1. Present value a-2. Is this a good deal? b-1. Present value b-2. Is this a good deal? You invest $1,500 today and expect to sell your investment for $2,700 in 9 years. a-1. Calculate the present value of the future payoff if the interest rate is 5%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Is this a good deal? b-1. Calculate the present value if the interest rate is 8%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Is this a good deal? a-1. Present value a-2. Is this a good deal? b-1. Present value b-2. Is this a good deal?

Answer rating: 100% (QA)

aPresent value5100Present value of discounting factorratetime period 5... View the full answer